A portfolio of seven apartment buildings in North Beach traded for $5.5 million, and the new owner has plans to renovate the properties.
County records show an affiliate of Tzadik Management sold the 28-unit assemblage, which is between 84th and 85th Streets west of Crespi Boulevard in Miami Beach. A partnership of two New York companies controlled by Jay Deutchman, a Bronx-based property owner, bought the two-story buildings. The deal closed on Thursday.
Fortune International Realty’s Michael Davalos marketed the properties. The buyer, a 1031 exchange, will gut-renovate the units, which are all three bedrooms, upgrading the bathrooms, kitchens, floors and converting them to central air conditioning, Davalos told The Real Deal. The deal breaks down to about $196,000 per unit, or $202 per square foot.
“This is a property that has a lot of potential for future growth. It’s rare to find this kind of assemblage in Miami Beach – add to that its close proximity to the ocean and you have a nice set-up,” Davalos said in a press release.
Property records show the buildings, constructed in 1948, last sold for a combined $2.1 million in 2011. Their addresses are: 640-650 85th Street, and 725, 735, 755, 775, 785 84th Street in Miami Beach. “We were able to take advantage of this opportunity to revitalize what at the time was a distressed and rundown property,” Alex Arguelles, chief acquisitions officer for Tzadik, said in the release.
The neighborhood of North Beach stretches from 63rd Street to 87th Street and westward to Biscayne Bay. The area is largely underdeveloped when compared with South Beach and the Mid-Beach area, but commercial activity has been heating up over the past year. Just last week, the ground floor retail at the Burleigh House condominium, which fronts Collins Avenue, sold for $6.8 million.
Tzadik sold a development site nearby in January. The Miami-based firm, which specializes in property management, development and capital markets, sold that construction site on 85th Street and Harding Avenue for $5 million. Tzadik has managed more than $300 million of apartment complexes and luxury condo developments, according to the release.